The role of informal food markets – towards professionalizing, not criminalizing
Kristina Roesel
16th Annual Meeting of the Inter-Agency Donor Group on Pro-poor-livestock research and development
Berlin, 18 -20 November 2015
IFPRI discussion paper #01451, July 2015
• Describes piloting of institutional innovation of training, certification and branding (TCB) scheme for informal value chain actors
• Describes development of theory of change how it leads to improved food safety and nutrition of poor producers and consumers
• Download from http://www.ifpri.org/publication/how-will-training-traders-contribute-improved-food-safety-informal-markets-meat-and-milk
Outline
• What and who are these informal markets?
• Evidence for constraints and opportunities
• How TCB could lead to improvements
Food marketing in industrialized countries
• Harmonization, regulation, surveillance, diagnostics
• Growing demand for regional and organic food, back to traditional
© www.healthnews.de
© alliance/KUNZ/Augenk© AP / David Goldman
Food marketing in developing countries
• Traditional processing, products and retail prices predominate
• Many actors are not licensed and do not pay taxes
© CSRS/Valentin B. Koné
© UoG/Kennedy Bomfeh
© ILRI/Stevie Mann
© ILRI/Michel Dione
© ILRI/Danilo Pezo
© Daily Monitor/Abubaker Lubowa
• Often escape effective health and safety regulation
• >80% of ASF marketed informally
• Sub-Saharan Africa: ca. 55% GDP, 80% labour force (AfDB, 2013)
Food marketing in developing countries:informal markets/ wet markets
© ILRI/Dave Elsworth
© ILRI/Kristina Roesel
© ILRI/Kristina Roesel
• Inadequate, inefficient policy and legislation• Inappropriate standards and limited enforcement• Failure to cover informal markets (and sometimes formal markets)
• Limited civil society involvement• Trivializing instead of risk communication
Food marketing in developing countries
© CSRS/Valentin Bognan Koné © ILRI/Kristina Roesel
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0
10
20
30
40
50
60
70
80
90
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Poor total bacteria Unacceptable totalbacteria
Unacceptablefaecal bacteria
UnaccpetableStaph
Unacceptablelisteria
Any unacceptable
SupermarketWet marketVillage
Compliance : Formal often worse than informal
Informal markets have a major role in food security and safety
Benefits of wet markets
Cheap,Fresh,
Local breeds,Accessible,
Small amounts (kidogo)Sellers are trusted,
Credit may be provided
(results from PRAs with consumers in Safe Food, Fair Food project)
Wet market milk
Supermarket milk
Most common price /litre
56 cents One dollar
Infants consume daily
67% 65%
Boil milk 99% 79%
Survey in supermarkets and wet markets in Nairobi in 2014
Foodborne diseases
• Cause >200 syndromes from diarrhea to cancer
• Kill an estimated 2m people annually
• Burden of foodborne diarrhea mostly in developing countries
• Animal source foods single most important source of FBD
0 50 100
Lower resp. infect.
HIV/AIDS
Diarrheal diseases
Stroke
Ischaemic heart disease
Malaria
Preterm birth comp.
Tuberculosis
Birth asphysia
Protein/energy malnut.
Deaths per 100,000 population
Top 10 causes of death in low income countries (WHO, 2012)
Research evidence shows
• Hazards are common but risk not necessarily high
• Post-process contamination
• Lack of incentives and knowledge to improve
• Bulking point: aggregating risk but also knowledge
bulking
© ILRI/Stevie Mann
© ILRI/Ben Lukuyu
© ILRI/Apollo Habtamu
© ILRI/Brad Collins
© ILRI/Stevie Mann
© SUA/Fortunate Shija
ContaminationAdulteration
What can happen at milk bulking points…
© ILRI/Dave Elsworth
Professionalizing, not criminalizing:a trader-based intervention
• Kenya Smallholder Dairy Project (SDP) http://www.smallholderdairy.org/
• 1997-2006
• ILRI/KARI/MoLFD (DFID-funded)
• Initial sector analysis:
• 86% of milk sold informally• Informal = illegal• Milk safety used to justify suppression
(quality no lower )• Constraint: lack of knowledge/awareness
about hygienic handling and quality control among traders
• 43% of cooperative workers had received some training vs 4% mobile hawkers
1.4b litres per yr
Direct sales from farm to consumer
Milk Bars, Shops & Kiosks
42%
15% 15%
Mobile Traders
23% 17%
Dairy Coop. Societies
24% 6%
6%
12%
Processors 2% 14%
Raw milk Past./UHT
• training manual and curriculum for hygienic milk handling
• Improved metal containers that could be carried on bicycles
• Simple quality tests for raw milk
• 2002 pilot training
• 2004 new dairy policy recognizing small-scale milk-vendors
• KDB training by accredited committee, certificate, licensing against a fee
• Branding: white coats, boots
Training, certification, branding (TCB/T&C)
• 2009 15% of traders registered
• Change in practices
• Economic-wide impact of policy change (US$28m/year)
• Scheme still running but needs followup: policy buy-in, vested interests of formal sector
• http://pubs.iied.org/17316IIED.html
Sustainable impact?
Theory of change for trader-based intervention
• To understand impact logic of potential interventions
• Builds on research & experience• Explains how intervention is expected
to work on institutional level• Identifies assumptions
Improved diet quality
More, safer milk, meat and fish consumed by target
beneficiaries
Increased quality of animal products sold
Women maintain or increase control of income and assets
Producer Supply
Gender
Reduced exposure to food-borne diseases
Enabling Environment
More equitable distribution of the benefits from quality
animal products
Trader Supply
Consumers
IF safer food products can be made availableand
IF the benefits from consuming safe and nutritious food can be more widely and equitably distributed
=> THEN improved diets will result for women and children
• Currently, high levels of contamination (hazards)
• Main source of ASF is informal market
• Practices effective in value chain context
• Traders trained are large scale of market
• Traders see incentives to get certified
• Practices feasible and traders have incentives to adopt
• No barriers to accessing the training
• Materials and approaches relevant, appropriate effective
• Traders see incentives for participation
• Right information reaches right actors
• Enabling policy environment exists for informal markets
• Self-interest induces traders to work with producers on safety
• Consumers have concerns about food safety
• Consumers trust branding
• Consumers‘ WTP
• Consumers take time to learn about branding
• Consumers have concerns about food safety
• Branding effectively reaches the poor consumer
Many trainings tools available…
WHO „5 keys to safer food“
• Concepts vs expert knowledge (i.e. E. coli beans)
• Simple messages
• Affordable alternatives (i.e. ashes vs. soap)
• Short training
Technical innovations & training:insecticide-treated nets
GIZ-funded Safe Food, Fair Food projectDAAD
trade-offs efficiency vs attractiveness
GIZ-funded Safe Food, Fair Food projectIrishAid-funded MorePork project
Technical innovations & training:biogas digester at pig abattoir
The presentation has a Creative Commons licence. You are free to re-use or distribute this work, provided credit is given to ILRI.
Kristina RoeselProject coordinator “Safe Food, Fair Food”Freie Universität Berlin/[email protected]
http://safefoodfairfood.ilri.org
Better lives through livestockwww.ilri.org
THANK YOU!
